UK retail demand for government bonds spiked this week after gilt yields rose to
multi-decade highs. On IG Group’s Freetrade platform, Tuesday’s gilt purchases
were the highest so far this year by both order count and value; Freetrade has
about 1.6m UK-registered users. Low-coupon gilts were among the most popular
securities on the platform, which said they offer more attractive tax-adjusted
returns. Hargreaves Lansdown also reported heavy demand: the 5.375% 2056 gilt
was its most-traded bond, with gilts maturing in 2028 and 2061 also seeing large
inflows; Hargreaves said Tuesday was its largest day for gilt purchases since
May 15. Freetrade analyst Alex Pugh said higher yields make gilts more
attractive to retail investors seeking diversification from equities and more
predictable, Tax-efficient returns.
